Property Management Income Taxes In Alaska

Updated August 7, 2026

8 min read

This guide covers how rental and management income is taxed in Alaska: what the state takes, what the IRS takes, who has to withhold on an out-of-state owner, and when each return is due. Every figure is tied to the statute, agency rule, or published guidance that sets it, so you can confirm a rate before acting on it.

State Income Tax On Rental And Management Income

Alaska has no state personal income tax. The individual income tax was repealed in 1980 and never replaced, so rental income and property management fees earned by individuals, partnerships, LLCs and S corporations are not taxed at the Alaska state level. C corporations are the exception and pay the Alaska corporate net income tax. This is a state-level absence only; local taxes still apply and are covered below.

There is no personal state income tax in Alaska. (Alaska Tax Facts, Office of the State Assessor)
Alaska's individual income tax was repealed in 1980. Entities whose income and losses are reported on the individual income tax returns of their members or partners are therefore not subject to Alaska tax, which covers S corporations, partnerships and most LLCs holding rental property. (Alaska Legislative Research Services report on state taxes)
Alaska taxes C corporations under the Alaska Net Income Tax Act using ten rates across ten levels of taxable income, with income of $90,000 or more taxed at the top rate of 9.4 percent. The structure has been in place since 1981. (Alaska Legislative Research Services, corporate income tax briefing)
The Alaska corporate return is Form 6000, Alaska Corporation Net Income Tax Return, filed with the Department of Revenue Tax Division. (Alaska Department of Revenue Tax Division, Corporate Income Tax Forms)
Because Alaska has no individual income tax, there is no state nonresident-owner withholding for a property manager to handle on rent distributions to out-of-state owners. (Alaska Tax Facts, Office of the State Assessor)

Withholding And Employer Taxes

There is no Alaska state income tax withholding on wages because there is no state income tax. The payroll obligation that does apply is the Alaska Employment Security Tax, and Alaska is one of the very few states where the EMPLOYEE also contributes, which surprises managers relocating a payroll operation into the state. Contributions are reported quarterly on Form TQ01C.

Alaska has no state personal income tax, so employers do not withhold state income tax from employee wages. (Alaska Tax Facts, Office of the State Assessor)
The 2026 Alaska unemployment insurance employee contribution rate is 0.50 percent, withheld from employee wages in addition to the employer's own contribution. (Alaska Department of Labor and Workforce Development, 2026 Unemployment Insurance Tax Rates)
The 2026 Alaska taxable wage base is $54,200 per employee. (Alaska Department of Labor and Workforce Development, 2026 Unemployment Insurance Tax Rates)
For 2025, Alaska employer unemployment insurance tax rates ranged from 1.00 percent to 5.40 percent, with the employee rate at 0.50 percent. (Alaska Department of Labor and Workforce Development, 2025 Unemployment Insurance Tax Rates)
Unemployment insurance contributions are due for each employee up to the taxable wage base. Wages paid to an employee in excess of the taxable wage base must still be reported but are not taxed. (Alaska Department of Labor and Workforce Development, Employment Security Tax FAQ)
Employers report and pay on Form TQ01C, the Alaska Quarterly Contribution Report, where the total rate equals the employer rate plus the employee rate. Quarterly reports and payments are due by the last day of the month following the end of the quarter, so the first quarter is due April 30. (Alaska Department of Labor and Workforce Development, Form TQ01C Alaska Quarterly Contribution Report)

Federal Obligations

With no state income tax, federal reporting carries nearly the entire income tax burden for Alaska rental owners, which makes Schedule E accuracy and 1099 compliance the whole game. The 27.5-year depreciation life and the 1099 threshold change between 2025 and 2026 payments apply identically in Alaska.

Income and expenses from real estate rentals are reported on Schedule E (Form 1040), Supplemental Income and Loss. If the owner provides substantial services to tenants beyond ordinary rental services, the activity is reported on Schedule C (Form 1040) instead. (IRS Topic No. 414, Rental Income and Expenses)
Advance rent is included in income in the year received regardless of accounting method. Tenant-paid expenses covering the owner's costs are rental income, and a security deposit becomes income when kept because the tenant broke the lease or caused damage for which repair costs are deducted. (IRS Topic No. 414, Rental Income and Expenses)
Residential rental property is depreciated over 27.5 years under the General Depreciation System, or 30 years under the Alternative Depreciation System, using the mid-month convention. Land cannot be depreciated. (IRS Publication 527, Residential Rental Property)
Depreciation is reported on Form 4562, Depreciation and Amortization, beginning in the year the property is placed in service and in any later year an improvement is made. (IRS Topic No. 414, Rental Income and Expenses)
The information return threshold is $600 for payments made during 2025 and rises to $2,000 for payments made after December 31, 2025, with inflation adjustment in calendar years after 2026. The change applies to rents and other payments on Form 1099-MISC and to nonemployee compensation on Form 1099-NEC. (IRS, Instructions for Forms 1099-MISC and 1099-NEC)
Form 1099-MISC reports rents paid in the course of a business, and Form 1099-NEC reports payments for services to a person who is not an employee, such as maintenance contractors and snow removal vendors. (IRS, Instructions for Forms 1099-MISC and 1099-NEC)

Filing Deadlines

Alaska has no state income tax return to file, so the recurring state-level deadline for a management company is the quarterly unemployment insurance contribution report. Everything else is set locally: each borough or city sets its own property tax due dates, appeal windows and sales tax return schedules.

There is no Alaska individual income tax return, because the personal income tax was repealed in 1980 and no state personal income tax exists. (Alaska Tax Facts, Office of the State Assessor)
The Alaska Quarterly Contribution Report, Form TQ01C, and payment are due by the last day of the month following the end of each calendar quarter, so April 30, July 31, October 31 and January 31. (Alaska Department of Labor and Workforce Development, Employment Security Tax)
C corporations file Form 6000, the Alaska Corporation Net Income Tax Return, with the Department of Revenue Tax Division. (Alaska Department of Revenue Tax Division, Corporate Income Tax Forms)
Property tax due dates are set by each municipality. In Anchorage, real property taxes are due June 30 in full, or in halves due June 30 and August 31, with late penalties assessed July 8 and September 8 respectively. (Municipality of Anchorage, Dates for Property Taxation)
Assessment appeal windows are also local. Anchorage mails real property assessment notices in mid January and requires appeals within 30 days of the mailing date. (Municipality of Anchorage, FAQs about Appealing Assessments)

Recent Changes Worth Tracking

Effective January 1, 2026: The Alaska unemployment insurance taxable wage base rose to $54,200 per employee and the employee contribution rate was set at 0.50 percent for the 2026 calendar year. (Alaska Department of Labor and Workforce Development, 2026 Unemployment Insurance Tax Rates)

Tax is one half of Alaska compliance. See our guide to Alaska property management laws and regulations for licensing, trust account, and disclosure rules.

This page is one half of the picture. See our guide to the Alaska taxes a management company pays directly for the rest.

Keeping This Straight

Tax rates and thresholds move more often than most operators expect, and the figures circulating in older articles go stale quickly. Check any rate against its citation before you quote it to an owner, and re-check them at the start of each tax year.

This guide is a starting point for professional managers, not tax or legal advice. For a specific filing, work with a CPA familiar with Alaska rental property, and confirm current figures with the Alaska Department of Revenue, Tax Division, with boroughs and municipalities administering the taxes that actually touch rental property or the IRS.